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2021 Supreme(P&H) 64

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
MAHABIR SINGH SINDHU, J.
Dabra Coop. Transport Society Limited and others - Petitioners
Versus
State of Haryana and others - Respondents
Civil Writ Petition No.8087 of 2020 (O&M)
Civil Writ Petition No.7420 of 2020 (O&M)
Civil Writ Petition No.9661 of 2020 (O&M)
Civil Writ Petition No.9758 of 2020 (O&M)
Civil Writ Petition No.10234 of 2020 (O&M)
Decided On : 08-04-2021

Advocates Appeared:
For the Petitioner: Present:Mr. Rohit Kapoor, Advocate
For the Respondent:Mr. Ankur Mittal, Additional Advocate General, Haryana.
Mr. Pawan Kumar Mutneja and Mr. Nonish Kumar, Advocates.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 87, 99(1), 100(3), 104 - Rule of law - Judicial review - State granted temporary permits to private respondents unlawfully, infringing rights of existing operators under a valid scheme - State's executive decision interfered with quasi-judicial process - Issuance of permits was based on applications submitted after the deadline set by the Supreme Court. (Paras 10, 12, 13)

(B) Rule of Law - An executive action contrary to statutory provisions is unsustainable and amounting to violation of the rule of law. (Paras 12(vii), 12(viii))

Facts of the case:
Petitioners are holders of stage carriage permits under a government scheme. They challenged the legality of temporary permits issued to private respondents after the expiration of the relevant time limit set by the Supreme Court, alleging violation of legal procedures and infringement of their rights.

Findings of Court:
The court found that the State's actions violated established law and ignored the rights of existing permit holders.

Issues: Whether the State was empowered to issue permits conflicting with the already established scheme; and whether the issuance of permits violated the procedure prescribed by law.

Ratio Decidendi: The court concluded that the State acted beyond its authority and failed to comply with legal norms, leading to the infringement of petitioners' rights.

Result: The temporary permits granted to private respondents are quashed and set aside.

Table of Content
1. rule of law and executive accountability. (Para 1)
2. factual context regarding transport permits. (Para 2 , 3 , 4)
3. arguments of petitioners citing violations of law. (Para 6 , 7 , 8)
4. judicial analysis of executive power and law. (Para 9 , 10 , 11)
5. conclusions on permit issuance and rule of law. (Para 12 , 13)

JUDGMENT :

MAHABIR SINGH SINDHU, J.

1. A.V. Dicey in his monumental work “The Law of the Constitution” Ist Edition, Macmillan and co., while explaining the rule of law, stated as under:-

“With us every official, from the Prime Minister down to a constable or a collector of taxes, is under the same responsibility for every act done without legal justification as any other citizen. The Reports abound with cases in which officials have been brought before the Courts and made in their personal capacity liable to punishment or to the payment of damages for acts done in their official character but in excess of their lawful authority.”

India, being an ardent supporter of the rule of law, hosted an event of the International Commission of Jurists comprising 185 judges, practicing lawyers and teachers of the law from 53 countries across the world (Declaration of Delhi), on January 5-10, 1959 and Committee on “The Executive and The Rule of Law”, inter alia, came to the following conclusions:-

“Clause VI:

A citizen who suffers injury as a result of illegal acts of the Executive should have an adequate remedy either in the form of a proceeding against the State or against the individual wrongdoer, with the assurance of satisfaction of the judgment in the latter case, or both” along with other connected cases

Clause VII:

Irrespective of the availability of judicial review to correct illegal action by the Executive after it has occurred, it is generally desirable to institute appropriate antecedent procedures of hearing, enquiry or consultation through which parties whose rights or interests will be affected may have an adequate opportunity to make representations so as to minimize the likelihood of unlawful or unreasonable executive action.”

Clause VIII:

It will further the Rule of Law if the Executive is required to formulate its reasons when reaching its decisions of a judicial or administrative character and affecting the rights of individuals and at the request of a party concerned to communicate them to him.”

The decisions of above declaration were duly affirmed in next session of the International Body, held at Lagos from January (3-7), 1961.

Our country is a parliamentary democracy; Central Government as well as State Government are vested with powers limited under the Constitution and in case such a limit is crossed, the remedy of judicial review can be invoked before the Constitutional Courts to preserve the rule of law. The Hon’ble Supreme Court while emphasizing on the rule of law observed in the following manner:-

“The Constitution of India is the supreme law of the land, having flown from "We, the people of India, i.e., Bharat, having solemnly resolved to constitute India into a sovereign, socialist, secular democratic republic. The sovereign power is distributed among the Legislature, the Executive and the Judiciary with checks and balances but not in water tight rigid would. In our democracy governed by the rule of law, the Judiciary has expressly been entrusted with the power of judicial review as sentinal in qui vive. Basically judicial review of administrative actions as also of legislation is exercised against the action of the along with other connected cases State. Since the State or public authorities act in exercise of their executive or legislative power, they are amenable to the judicial review. The State, therefore, is subject to etat de droit, i.e. the State is submitted to the law which implies that all actions of the S

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